Bitfarms Ltd. (NASDAQ: BITF//TSX: BITF), a global Bitcoin mining company, has reported impressive achievements for the year ended December 31, 2023. The company surpassed its hash rate and capacity, i.e., 446 BTC in December and 4,928 BTC for 2023, ending the year with strong liquidity and strategic partnerships.
Operational Performance in 2023
Hashrate Growth and Capacity Expansion
Bitfarms achieved a remarkable 44% year-over-year increase in hash rate to 6.5 EH/s by December 31, 2023. This substantial growth in computational power demonstrates the company’s commitment to staying at the forefront of the Bitcoin mining industry. Additionally, Bitfarms expanded its total contracted capacity to 593 MW, solidifying its position as a significant player in the market and ensuring operational excellence.
Future Goals and Outlook
Looking ahead, Bitfarms is on track to achieve ambitious goals in Q2 2024. The company aims to reach 12 EH/s and 25 w/TH fleet efficiency, representing significant increases of 85% and 29%, respectively, compared to year-end 2023. Maintaining flexibility and optionality, Bitfarms also has the potential to achieve 17 EH/s and 23 w/TH fleet efficiency before the end of 2024, showcasing its commitment to continuous improvement and adaptability.
CEO Perspective
Geoff Morphy, CEO of Bitfarms, expressed confidence in the company’s growth strategy, citing the successful execution of plans in 2023. Morphy highlighted the company’s liquidity position, low-cost power contracts, and a substantial miner purchase agreement, setting the stage for aggressive expansion in 2024.
Mining Operations Overview
December 2023 Highlights
Bitfarms had a strong finish to 2023, with December production reaching 446 BTC, reflecting a 13.8% increase from November. This growth was attributed to high uptime and a significant surge in transaction fees, offsetting a network difficulty increase of 6.0%. The company’s commitment to maintaining operational efficiency is evident in the average online hash rate of 6.2 EH/s and an impressive 71.7 BTC per average EH/s.
| Key Performance Indicators | December 2023 | November 2023 | December 2022 |
|---|---|---|---|
| Total BTC earned | 446 | 392 | 496 |
| Month End Operating EH/s | 6.5 | 6.4 | 4.5 |
| BTC/Avg. EH/s | 72 | 66 | 113 |
| Operating Capacity (MW) | 240 | 240 | 188 |
| Hydropower MW | 186 | 186 | 178 |
| Watts/Terahash Efficiency (w/TH) | 35 | 35 | 40 |
| BTC Sold | 444 | 350 | 1,755 |
This table presents critical performance indicators for Bitfarms in December 2023, comparing them with the preceding month, November 2023, and the same month in the previous year, December 2022.
Paso Pe, Paraguay Expansion and Baie-Comeau, Quebec Development
In Paso Pe, Paraguay, Bitfarms finalized an additional 20 MW energy contract to support the expansion of its air-cooled warehouse operating capacity from 30 MW to 50 MW. The completion of the 80 MW transformer, now in transit, and progress in underground cable connections underscore the company’s commitment to meeting its expansion targets.
In Baie-Comeau, Quebec, preparations for the 11 MW H2 2024 expansion are well underway. The site has been cleared, and concrete footings for the building have been poured ahead of schedule.
Bitfarms’ BTC Monthly Production
| Month | BTC Earned 2023 | BTC Earned 2022 |
|---|---|---|
| January | 486 | 301 |
| February | 387 | 298 |
| March | 424 | 363 |
| April | 379 | 405 |
| May | 459 | 431 |
| June | 385 | 420 |
| July | 378 | 500 |
| August | 383 | 534 |
| September | 411 | 481 |
| October | 398 | 486 |
| November | 392 | 453 |
| December | 446 | 496 |
| Totals | 4,928 | 5,167 |
This table presents the monthly BTC earnings for the year 2023 and the corresponding values for the year 2022, along with the cumulative totals for each year.
Financial Strength
December 2023 Financial Update
In December 2023, Bitfarms sold 444 BTC, generating total proceeds of $18.9 million. The company increased its BTC holdings in the treasury to 804, valued at approximately $34.2 million, based on a BTC price of $42,500 on December 31, 2023. Furthermore, Bitfarms strengthened its financial position by reducing total outstanding indebtedness during the month by $2.0 million, leaving a remaining balance of $4.0 million on December 31, 2023, all scheduled to be paid by February 2024. The company ended the year with a robust financial position, holding approximately $84 million in cash and cash equivalents.
CFO’s Perspective
Jeff Lucas, CFO of Bitfarms, emphasized the company’s commitment to capital-efficient growth, with a focus on utilizing cash flow for expansion and upgrades. The financial update highlighted the strategic increase in BTC exposure and the reduction of outstanding debt.
Upcoming Events
Bitfarms plans to participate in several events, including the 26th Annual Needham Growth Conference and Nasdaq Bell Ringing, providing stakeholders with opportunities to learn more about the company’s vision and plans.
About Bitfarms
Founded in 2017, Bitfarms is a globally traded Bitcoin mining company with a commitment to sustainability. Operating in four countries, Bitfarms utilizes predominantly environmentally friendly energy sources, contributing to its reputation for operational excellence.
For further information about Bitfarms, visit their official website.
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